Category Archives: Arizona News

Downtown Tempe has Shortage of Class A Office – Look no further than Centerpoint on Mill

As the City of Tempe announces a shortage of Class A office in the downtown Tempe corridor, DMB Associates announces approximately 10,000 square feet of office space available at Centerpoint on Mill.

Renovations are currently underway to convert second floor space fomerly occupied by a restaurant and salon to Class A office space.  Rental rates are starting at $23.00 full service and suites will be available for move-in by May.  NAI Horizon has been selected as the leasing broker for the property.

Click here for Property Flyer.

 

Grubb and Ellis files Chapter 11 Bankruptcy

Feb. 20, 2012, 9:51 p.m. EST

Grubb & Ellis Enters Into Strategic Transaction With BGC Partners

SANTA ANA, Calif., Feb. 20, 2012 /PRNewswire via COMTEX/ — Grubb & Ellis Company /quotes/zigman/8025908 GRBE -54.29% today announced that it has signed an agreement to sell substantially all its assets to BGC Partners, Inc. /quotes/zigman/110012/quotes/nls/bgcp BGCP -.00% (“BGC”), a leading global intermediary to the wholesale financial markets. BGC owns Newmark Knight Frank, one of the largest commercial real estate service firms in the U.S.

Upon completion, Grubb & Ellis believes the acquisition by BGC will bring the much-needed scale and resources the company had been seeking through its strategic process. The partnership with BGC, a financially strong and respected organization with a deep commitment to the commercial real estate markets, will position Grubb & Ellis to become part of a well-capitalized global platform.

“Following a thorough and rigorous process and the evaluation of all available options, we determined that a partnership with BGC provides the best platform for our brokerage professionals, employees and clients,” said Thomas P. D’Arcy, president and chief executive officer of Grubb & Ellis. “We believe the transaction will be seamless for our clients and we expect no disruption to the company’s operations. Furthermore, we believe our professionals and clients will benefit greatly by being part of the BGC organization, which, with its recent acquisition of Newmark Knight Frank, will bring together two strong brands to create a powerhouse in the commercial real estate space. BGC’s purchase of the company’s senior debt and its willingness to provide incremental financing to ensure the smooth execution of the sale process demonstrate its commitment to the success of the Grubb & Ellis business.”

Grubb & Ellis intends to implement the transaction as an asset sale under Section 363 of the U.S. Bankruptcy Code. To that end, the company has commenced Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York. Grubb & Ellis expects business to continue without disruption as it completes the “363” sale process as expeditiously as possible. The company has simultaneously filed motions requesting that the Court, among other things, approve sale procedures and fix a hearing date and time to approve a sale. Additionally, the company has filed a series of motions to facilitate ongoing operations.

D’Arcy continued, “We thank our outstanding team of professionals and our clients for the faith and loyalty they have shown in Grubb & Ellis through this process, and we are pleased to have found such a strong partner who can provide our company with financial stability and deeply enhanced opportunities. Our track record for exceptional client service will continue, and we look forward to future growth and success under new ownership.”

BGC has committed to provide Grubb & Ellis with “debtor-in-possession” (“DIP”) financing to support the company’s operations throughout the “363” sale process. Following Court approval, the DIP financing, combined with funds generated by the company’s ongoing operations, will be used to support the business through the consummation of the sale.

Makeover on McDowell: Developer creating multitenant retail

Premium content from Phoenix Business Journal – by Jan Buchholz

Date: Friday, August 26, 2011, 3:00am MST

Many developers in Phoenix have gone out of business, left town or found a different business niche, but Ashley Harder is undaunted. The first-time developer is beginning her new career with a remodel of a historic commercial space at 335 W. McDowell Road in Phoenix.

“I chose this site because there is a change happening on McDowell,” Harder said. “It’s where the art and cultural district meets the business district.”

Down the street at the southeast corner of McDowell and Seventh Avenue, Vintage Partners also is renovating a collection of three interlocking buildings into a neighborhood shopping center that will have between six and eight tenants. According to Vintage Principal David Scholl, the 16,000-square-foot building will be completed in mid-November, and tenants will move in shortly thereafter.

Five Guys Burgers and Fries, Jersey Mike’s Subs and Zoyo Yogurt have signed on at Vintage, with negotiations in process for others. It will be called the Corner on 7th.

Unlike Harder, who is going it alone, Scholl, a former Westcor, has teamed with two other former Westcor executives, Mike Treadwell and Bob Williams, to create a development company that focuses on retail neighborhood infill sites. Recently, the company added four other real estate professionals to its team — Monty Ortman, Mark Ortman, Walter Crutchfield and Casey Treadwell — but Scholl said the objective is to stay small, nimble and ready to respond to retail and neighborhood needs.

As for Harder, she purchased the 3,000-square-foot building in March. According to documents filed with the Maricopa County Recorder’s office, she paid $345,000 for the building that, in its previous incarnation, was a salvage antique store. It originally was built as a single-family home in the early 1940s and rebuilt for a variety of commercial uses over the years.

Her company, Harder Development, is converting the current single-store footprint into three stores. A patio with benches and shade trees will surround the building.

“It will have a very sweet and warm atmosphere,” said Harder, who is putting some of her own capital into the project but relying mostly on loans from private sources. “This would be difficult to do without private investors.”

It wouldn’t be possible either without the depressed prices that currently characterize the Phoenix real estate market.

“Because of that, I’m able to make it work,” she said.

Mark Stapp, director of the masters in real estate development program at Arizona State University Arizona State University, said Harder is focusing on the one niche that has the potential of success in such a difficult market.

“There’s a lot of little things going on in town. They’re very focused, very much local kinds of projects,” Stapp said. “That’s a good thing. We very much need these small, organic projects to give us character.”

Barbara Lloyd, a broker with NAI Horizon in Phoenix, is handling retail leasing for Harder.

Earlier this summer Lloyd held an open house.

“(It was) very successful. We had about 60 people attend, including brokers, downtown business owners and neighbors,” Lloyd said.

Though no tenants have signed on thus far, Harder and Lloyd said there has been a lot of interest from small-business owners, including a wine shop, yoga studio, pet shop, accessory and apparel stores and art galleries.

Harder expects to pull a building permit in September and ultimately lease the property for about $22 per square foot. She still hasn’t picked a name for the project, but she’s asking fans of Harder Development’s Facebook page to submit ideas.

The architect on the project is Glenn Liptack, principal with Nostdahl Liptack Architects PLC in Phoenix. The contractor is Willmeng Construction Inc. Willmeng Construction Inc.

“I want to get it filled up by the holidays,” Harder said.

Office Leasing Getting Done in Tempe

We are pleased to announce an uptick in successful leasing transactions throughout our Tempe properties.

Our team has completed eight new leases in the past seven weeks in our Tempe Office listings.  We are seeing an increase in interest and decision making from business owners taking advantage of the current lower rental rates.

We have space available at the follwing locations:

Tempe Corporate Center, Carleton Business Park, 600 E Baseline, 9865 S Priest

We are available to meet and discuss how we may be able to reduce your operating costs by lowering your monthly rent in a new location!

North Scottsdale Office – Great Views/Great Deal!

Take a virutal tour of the second floor space located at Greenway Hayden and Frank Lloyd Wright in Scottsdale, AZ. http://tours.virtualopenhouse360.com/16277/

The space is ready for move-in, just need to install new flooring of the tenant’s choice!  The space is just under 12,000 sf and our asking lease rate well below the competition.  The building is owned by First Fidelity Bank who occupies the first floor.  There is abundant parking of over 6:1000 sf and excellent mountain views.  Please call Barbara to arrange a tour.

Northsight Village Retail Sells

Business Real Estate Weekly

Published:   April 8, 2011
Volume:   XVII    Number:   13

   

Scottsdale – Northsight LLC in Gilbert (Andrew Martin, C. Dennis Barney, et al., principals) paid $3.1 million ($125.30 per foot) to buy a 24,740-square-foot retail plaza located at 14870 N. Northsight Boulevard in Scottsdale. The seller was MidFirst Bank. The seller in the cash deal was represented by Chris Toci, Jon Cowen and Summer Davis of Cushman & Wakefield of Arizona Inc. in Phoenix. Steve Cook of ESCEE Commercial Properties in Scottsdale worked on behalf of the buyer. The retail center, called Northsight Village III, was 63.8 percent leased at closing. No word on leasing assignment. The retail space, which is located at the southwest corner Northsight Boulevard and Butherus Drive, was built in 2003. MidFirst Bank foreclosed on the previous owner of the property. Martin and Barney have been active investors in the Valley and are looking for more properties.

VILLAS ON APACHE STUDENT HOUSING COMPLEX AT ASU SOLD FOR $14.756 MILLION

Business Real Estate Weekly

Published:   April 8, 2011
Volume:   XVII    Number:   13

Tempe – A company formed by University Communities LLC in Denver, Colo. (Lee Ryder, et al., principals) paid $14.756 million ($132,937 per unit) to acquire the 111-unit Villas on Apache apartments located near Arizona State University at 1111 E. Apache Boulevard in Tempe. The seller was SHP-Commons on Apache LLC, a company formed by American Campus Communities in Austin, Tex. (NYSE:ACC, William Bayless, Jr., pres.). The cash sale was brokered through Ryan Reid of CB Richard Ellis in Dallas, Tex., and Tyler Anderson and Sean Cunningham of CBRE in Phoenix. Villas on Apache, which was built in 1987 and renovated in 2006, is comprised of two-bedroom units. The privately-held University Communities owns multiple student housing communities across the country. The capital to purchase the properties comes from institutional investors. Ryder says the company is looking for more student housing investment opportunities close to major universities in Arizona. University Communities also owns the 76-unit Sky View apartments at 1050 E. Eighth Street near the University of Arizona in Tucson. In June 1999, BREW reported American Campus Communities paying $9.5 million ($85,586 per unit) to buy Villas on Apache.

ASU HOUSING COMPLEX SOLD TO PIERCE EDUCATION PROPERTIES VENTURE FOR $52 MILLION

Published:   March 18, 2011
Volume:   XVII    Number:   10

Tempe – A venture formed by Pierce Education Properties in San Diego, Calif. (Fredick Pierce, pres.) and Partners Group in Zug, Switzerland (Steffen Meister, CEO) paid $52 million ($212,245 per unit) to acquire the 245-unit Block 1949 student housing community located adjacent to Arizona State University at 1949 E. University Drive in Tempe. The seller was JLB Tempe LLC, a company formed by JLB Partners L.P. in Irving, Tex. (James Bosler, chairman). Public records show PEP – PG Tempe LLC (formed by Pierce Education Properties and Partners Group) acquired the Block 1949 complex with a $13.5 million down payment and a $38.5 million loan from German American Capital Corp. in New York City, N.Y. The fully furnished rentals feature efficiency, two-, three- and four-bedroom units ranging from 482 sq. ft. to 1,792 sq. ft. In all, there are 640 beds in the project. Built in 2010, the gated Block 1949 community has a wide array of amenities. The investment is the first in Arizona for Pierce Education Properties and Partners Group. The company presently owns and manages a portfolio of 5,600 beds of off-campus student housing. The group of properties is owned in joint ventures with institutional partners and high net worth individuals. PEP provides asset management and property management services for the student housing investments. Partners Group is a global private markets investment management firm with more than $20 billion (Euro) in investment programs.

Towers tip of the iceberg for Tempe development surge?

Posted: Saturday, March 12, 2011 10:30 am | Updated: 11:37 pm, Mon Mar 14, 2011.

Towers tip of the iceberg for Tempe development surge? By Garin Groff, Tribune East Valley Tribune | 5 comments

A massive complex of 20-story towers is being proposed along Tempe Town Lake in what is one of the most ambitious new projects contemplated in the East Valley since the recession crippled new development.

And a project representative said to expect plans for even more downtown Tempe buildings soon.

The interest in new development might seem a signal the economy is roaring back. But don’t expect to see many new buildings for a while.

Rather, investors are getting their ducks in a row for when vacant buildings fill up and demand grows for new office, condo and hotel towers.

That could take several years for the just-proposed Hayden Harbor in Tempe, said Manjula Vaz, a zoning attorney who represents the 2 million square-foot development. Hayden Harbor would feature seven towers of up to 278 feet, on the north bank of the lake and west of Scottsdale Road. One tower would house offices, with about 1,400 condos in the others.

The plan comes from a limited liability corporation called El Fenix I and El Fenix II, Vaz said.

“Our goal is to attract other investors and build maybe one building at a time,” Vaz said.

The initial interest in this kind of a project isn’t a surprise to Jay Butler, the longtime director of Arizona State University’s Realty Studies Department. But he’s not sure there’s demand for this type of urban high-rise lifestyle in a place where residents like to enjoy the sun in their own backyards.

The Valley’s first high-rise condo debuted in Phoenix in 1964 and few followed until the boom last decade, he said. Butler doubts the public demanded as many high-rise units as were built and is skeptical investors or homeowners will embrace more urban condos.

“I’m not betting on it.” Butler said. “It just doesn’t seem to be a desired lifestyle unless something drastic comes up, like you can’t have your swimming pools. People are still wanting to have that sort of thing.”

He noted the struggles of the Hayden Ferry Lakeside condos on lake’s south shore development coming to a halt before the Centerpoint Condominiums could be completed in downtown Tempe. Centerpoint will open as 375 upscale apartments this summer called West Sixth.

Regardless of what future homebuyers will want, Butler expects the East Valley will outperform the Valley’s real estate recovery. The region’s higher education institutes, public schools and job centers are important attractions, he said.

“They should be in the lead because they’ve got what people would be looking for,” he said.

Vaz, who represented numerous developers in downtown Tempe during the boom, said interest is high again in Tempe.

“You’ll see we have several projects coming up around downtown and the lake soon,” she said.

Hayden Harbor includes the site of the defunct Club Rio. The current plan is similar to a project Phoenix-based Namwest LLC had pitched before filing for bankruptcy protection in 2008. Namwest paid $40 million for 22 acres in 2005, outbidding developers that included Donald Trump.